# Liberty Global takes 5% ‘opportunistic’ stake in Vodafone Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-02-14 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Liberty Global reveals 5% stake in undervalued Vodafone, Meta Description: Explore Liberty Global's near-5% stake in Vodafone, an undervalued telecom giant, as disclosed by Reuters. Learn about the market dynamics and investment URL: https://financedigest.com/liberty-global-takes-5-opportunistic-stake-in-vodafonehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-02-13t191036z2lynxmpej1c0ryrtroptp4masmovil-m-a-vodafone-group-1736814448128-compressed.jpg) By Muvija M and Tiyashi Datta LONDON (Reuters) -U.S.-listed Liberty Global disclosed a near-5% stake in British telecom group Vodafone on Monday, saying its larger rival’s shares were undervalued by the market but ruling out a takeover. Liberty [Global Chief Executive Mike Fries called](https://www.financedigest.com/india-resists-calls-for-more-air-access-in-drive-to-be-global-aviation-force.html "India resists calls for more air access in drive to be global aviation force") the stake in Vodafone, whose shares have heavily lagged London’s blue-chip index over the past two years with a 30% drop, an “opportunistic and financial investment. We believe, like many others, that Vodafone’s current [share price](https://www.financedigest.com/netflix-cuts-prices-in-some-countries-to-boost-subscriptions-shares-drop.html "Netflix cuts prices in some countries to boost subscriptions, shares drop") does not reflect the underlying long-term value of their operating businesses, or their announced consolidation and infrastructure opportunities,” Fries said. Vodafone, which [reported worse-than-expected quarterly results](https://www.financedigest.com/severe-april-storms-result-in-2bn-hit-to-us-economy-according-to-aon-catastrophe-report.html "Severe April storms result in bn hit to US economy, according to Aon catastrophe report") earlier this month, declined to comment. The pair own Vodafone Ziggo, a Netherlands venture. The British company, whose boss of four years, Nick Read, stepped down in December, has been [selling assets](https://www.financedigest.com/uks-cineworld-to-not-sell-assets-individually-denies-talks-with-amc.html "UK’s Cineworld to not sell assets individually, denies talks with AMC") to focus on Europe and Africa, but the deals have not boosted its stock price, which has fallen over the past five years. Liberty [Global owns half](https://www.financedigest.com/global-economy-weathered-98bn-natural-hazard-loss-in-first-half-of-2016-according-to-aon-catastrophe-report.html "GLOBAL ECONOMY WEATHERED BN NATURAL HAZARD LOSS IN FIRST HALF OF 2016, ACCORDING TO AON CATASTROPHE REPORT") of Virgin Media O2, a major Vodafone rival in its home market, and has operations in Belgium, Switzerland, Ireland and Slovakia. Liberty Global is now Vodafone’s third-largest [shareholder after UAE-based telecoms company e& and American investment group](https://www.financedigest.com/shareholder-group-iss-backs-barclays-board-over-former-ceo-staley.html "Shareholder group ISS backs Barclays board over former CEO Staley") BlackRock. French telecoms [billionaire Xavier Niel also bought a stake](https://www.financedigest.com/billionaire-cohen-builds-stake-in-nordstrom-urges-board-shakeup.html "Billionaire Cohen builds stake in Nordstrom, urges board shakeup") in Vodafone last year. Shares in Vodafone, which operates in 24 countries, closed 2.1% higher at 94 pence on Monday, [giving the company a market capitalisation of 25.50 billion pounds](https://www.financedigest.com/uk-gives-bbc-world-service-20-million-pounds-to-support-english-language-broadcasting.html "UK gives BBC World Service 20 million pounds to support English language broadcasting") ($30.94 billion), Refinitiv data showed. Liberty Global, valued at $9.94 billion, bought 1.34 [billion Vodafone shares](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3"), or about 4.93% of the company, through a deal involving 225 million pounds in equity funding from the group, according to its statement. The Nasdaq-listed company, which also has stakes in British broadcaster ITV, [data centre provider AtlasEdge and the Formula E racing](https://www.financedigest.com/the-race-to-avoid-data-dinosaur-extinction.html "THE RACE TO AVOID DATA DINOSAUR EXTINCTION") series, said it did not intend to seek a board seat. Its shares were down 1.6% by 1940 GMT, losing out on a broader [Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") rally. ($1 = 0.8242 pounds) [(Reporting by Muvija M in London](https://www.financedigest.com/london-reclaims-place-as-preeminent-global-financial-centre-for-the-first-time-since-2013-according-to-global-regulatory-outlook-report-from-duff-phelps.html "London reclaims place as preeminent global financial centre for the first time since 2013, according to Global Regulatory Outlook report from Duff & Phelps") and Tiyashi Datta in Bengaluru; Editing by Shinjini Ganguli, Jane Merriman, Paul Sandle and Richard Chang) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---